02-349 Resolution No. 02-349
RESOLUTION
AUTHORIZING EXECUTION OF AN AGREEMENT WITH
ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES, INC.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Olufemi Folarin, Interim City Manager, and Dolonna
Mecum, City Clerk, be and are hereby authorized and directed to
execute an agreement on behalf of the City of Elgin with
Arthur J. Gallagher Risk Management Services, Inc . for safety
consultant services, a copy of which is attached hereto and made
a part hereof by reference .
s/ Ed Shock
Ed Schoc , Mayor
Presented: November 6, 2002
Adopted: November 6, 2002
Omnibus Vote : Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
AGREEMENT
THIS AGREEMENT, made and entered into this 17 qday of 43C4- ;2002, by and between
the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as "CITY") and
Arthur J. Gallagher Risk Management Services, Inc., a Delaware corporation (hereinafter
referred to as "CONSULTANT").
WHEREAS, the CITY desires to engage the CONSULTANT to furnish certain professional
services in connection with an assessment of the City's safety and health practices (hereinafter
referred to as the PROJECT).
AND
WHEREAS,the CONSULTANT represents that it has the neces$ary expertise and experience to
furnish such services upon the terms and conditions set forth herein below.
NOW, THEREFORE, it is hereby agreed by and between the CfTY and the CONSULTANT that
the CITY does hereby retain the CONSULTANT for and in consideration of the mutual promises
and covenants contained herein, the sufficiency of which is hereby acknowledged:
1. SCOPE OF SERVICES
A. All work hereunder shall be performed under the direction of the Purchasing
Director/Risk Manager of the CITY, herein after referred to as the "DIRECTOR".
B. A detailed Scope of Services is attached hereto as Attachment A.
2. WORK PRODUCTS
All work products prepared by the CONSULTANT pLrsuant hereto including, but not
limited too, reports,designs, calculations,work drawings,studies,photographs,models
and recommendations shall be the property of the CITY and shall be delivered to the
CITY upon request of the DIRECTOR provided, however, that the CONSULTANT may
retain copies of such work products for its records. Such work products are not
intended or represented to be suitable for reuse by the CITY on any extension to the
PROJECT or on any other project, and such reuse shi II be at the sole risk of the CITY
without liability or legal exposure to the CONSULTAFT.
3. PAYMENTS TO THE CONSULTANT
A. For services provided the CONSULTANT shall be reimbursed at the rate of
$98.75/hour with the total fee not to exceed $20,000.00 regardless of the actual
costs incurred by the CONSULTANT unless ubstantiai modifications to the
scope of the work are authorized in writing by tie DIRECTOR.
B. The CITY shall make periodic payments to the CONSULTANT based upon actual
progress within 30 days after receipt and approval of invoice.
4. INVOICES
A The CONSULTANT shall submit invoices in a format approved by the CITY.
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B. The CONSULTANT shall maintain records showing actual time devoted and cost
incurred. The CONSULTANT shall permit the authorized representative of the
CITY to inspect and audit all data and records of the CONSULTANT for work
done under this Agreement. The CONSULTANT shall make these records
available at reasonable times during the Agreement period, and for a year after
termination of this Agreement.
5. TERMINATION OF AGREEMENT
Notwithstanding any other provision hereof, the CITY may terminate this Agreement at
any time upon fifteen (15)days prior written notice to the CONSULTANT. In the event
that this Agreement is so terminated, the CONSULTANT shall be paid for services
actually performed and reimbursable expenses actually incurred prior to termination,
except that reimbursement shall not exceed the tasl' amounts set forth under Paragraph
4 above.
6. TERM
This Agreement shall become effective as of the ate the CONSULTANT is given a
notice to proceed and, unless terminated for causeor pursuant to Article 5, shall be
deemed concluded on the date the CITY determiries that all of the CONSULTANT's
work under this agreement is completed. A determination of completion shall not
constitute a waiver of any rights or claims which the CITY may have or thereafter
acquire with respect to any term or provision of the Agreement.
7. NOTICE OF CLAIM
If the CONSULTANT wishes to make a claim for adJitional compensation as a result of
action taken by the CITY,the CONSULTANT shall ive written notice of his claim within
15 days after occurrence of such action. No claim f r additional compensation shall be
valid unless so made. Any changes in the CONSOLTANT's fee shall be valid only to
the extent that such changes are included in writing signed by the CITY and the
CONSULTANT. Regardless of the decision of the CITY relative to a claim submitted by
the CONSULTANT, all work required under this Agreement as determined by the
DIRECTOR shall proceed without interruption.
8. BREACH OF CONTRACT
If either party violates or breaches any term of this Agreement,such violation or breach
shall be deemed to constitute a default, and the other party has the right to seek such
administrative, contractual or legal remedies as May be suitable to the violation or
breach;and, in addition, if either party, by reason of any default,fails within fifteen (15)
days after notice thereof by the other party to ;omply with the conditions of the
Agreement, the other party may terminate this Agr ement.
9. INDEMNIFICATION
To the fullest extent permitted by law, CONSULTANT agrees to and shall indemnify,
defend and hold harmless the CITY, its officer , employees, agents, boards and
commissions from and against anyand all claims, slits judgments, costs, attorneys
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fees,damages or other relief, including but not limited to workers compensation claims,
in any way resulting from or arising out of neglig nt actions or omissions of the
CONSULTANT in connection herewith,including negl gence or omissions of employees
or agents of the CONSULTANT arising out of the performance of this Agreement. In
the event of any action against the CITY, its officers, employees, agents, boards or
commissions, covered by the foregoing duty to inderhinify, defend and hold harmless
such action shall be defended by legal counsel of the CITY's choosing.
10. NO PERSONAL LIABILITY
No official,director, officer, agent or employee of the ITY shall be charged personally
or held contractually liable under any term or provisio of this Agreement or because of
their execution, approval or attempted execution of t is Agreement.
11. INSURANCE
A. Comprehensive Liability. The CONSULT°NT shall provide, pay for and
maintain in effect, during the term of this Agre=ment, a policy of comprehensive
general liability insurance with limits of at least $1,000,000 aggregate for bodily
injury and $1,000,000 aggregate for property •amage.
The CONSULTANT shall deliver to the DIRE TOR a Certification of Insurance
naming the CITY as additional insured. Th= policy shall not be modified or
terminated without thirty (30) days prior written notice to the DIRECTOR.
The Certificate of Insurance which shall includ: Contractual obligation assumed
by the CONSULTANT under Article 9 entitled"I demnification"shall be provided.
This insurance shall apply as primary insur:nce with respect to any other
insurance or self-insurance programs affordes to the CITY. There shall be no
endorsement or modification of this insurance to make it excess over other
available insurance, alternatively, if the insurance states that it is excess or
prorate, it shall be endorsed to be primary with respect to the CITY.
B. Comprehensive Automobile Liability. Co prehensive Automobile Liability
Insurance covering all owned, non-owned and ired motor vehicles with limits of
not less than $500,000 per occurrence for da age to property.
C. Combined Single Limit Policy. The require ents for insurance coverage for
the general liability and auto exposures may b: met with a combined single limit
of$1,000,000 per occurrence subject to a $1,600,000 aggregate.
12. NONDISCRIMINATION 1
In all hiring or employment made possible or resultin from this Agreement,there shall
be no discrimination against any employee or applica t for employment because of sex,
age, race, color, creed, national origin, marital status, or the presence of any sensory,
mental or physical handicap, unless based upon a bo a fide occupational qualification,
and this requirement shall apply to, but not be limit d to, the following: employment
advertising, layoff or termination, rates of pay or o her forms of compensation and
selection for training, including apprenticeship.
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No person shall be denied or subjected to discrimi ation in receipt of the benefit of any
services or activities made possible by or resulting from this Agreement on the grounds
of sex, race, color, creed, national origin, age e cept minimum age and retirement
provisions, marital status or the presence of any sensory, mental or physical handicap.
Any violation of this provision shall be considered 6 violation of a material provision of
this Agreement and shall be grounds for cancellation, termination or suspension, in
whole or in part, of the Agreement by the CITY.
13. ASSIGNMENT AND SUCCESSORS
This Agreement and each and every portion thereof shall be binding upon the
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successors and the assigns of the parties h reto; provided, however, that no
assignment shall be made without the prior written consent of the CITY.
14. DELEGATIONS AND SUBCONTRACTORS 1
Any assignment, delegation or subcontracting hall be subject to all the terms,
conditions and other provisions of this Agreement Ind the CONSULTANT shall remain
liable to the CITY with respect to each and every'item, condition and other provision
hereof to the same extent that the CONSULTANT would have been obligated if it had
done the work itself and no assignment,delegation or subcontract had been made. Any
proposed subcontractor shall require the CITY's advanced written approval.
15. NO CO-PARTNERSHIP OR AGENCY
This agreement shall not be construed so as to preate a partnership, joint venture,
employment or other agency relationship between the parties hereto.
16. SEVERABILITY
The parties intend and agreed that, if any paragraph,sub-paragraph, phrase,clause or
other provision of this Agreement, or any portion Ithereof, shall be held to be void or
otherwise unenforceable, all other portions of this ttlkgreement shall remain in full force
and effect.
17. HEADINGS
The headings of the several paragraphs of this Agreement are inserted only as a matter
of convenience and for reference and in no way are they intended to define, limit or
describe the scope of intent of any provision of this Agreement, nor shall they be
construed to affect in any manner the terms and provisions hereof or the interpretation
or construction thereof. 1
18. MODIFICATION OR AMENDMENT
This Agreement and its attachments constitutes the entire Agreement of the parties on
the subject matter hereof and may not be changed, modified, discharged or extended
except by written amendment duly executed by the parties. Each party agrees that no
representations or warranties shall be binding upori the other party unless expressed in
writing herein or in a duly executed amendment hereof, or change order as herein
provided.
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19. APPLICABLE LAW
This Agreement shall be deemed to have been male in, and shall be construed in
accordance with the laws of the State of Illinois.Venu for the resolution of any disputes
or the enforcement of any rights pursuant to this agreement shall be in the Circuit Court
of Kane County, Illinois.
20. NEWS RELEASES
The CONSULTANT may not issue any news releases without prior approval from the
DIRECTOR, nor will the CONSULTANT make public proposals developed under this
Agreement without prior written approval from 'the DIRECTOR prior to said
documentation becoming matters of public record.
21. COOPERATION WITH OTHER CONSULTANTS
The CONSULTANT shall cooperate with any other consultants in the CITY's employ or
any work associated with the PROJECT.
22. INTERFERENCE WITH PUBLIC CONTRACTING
The CONSULTANT certifies hereby that it is not barred from bidding on this contract as
a result of a violation of 720 ILCS 5/33E et seq. Or any similar state or federal statute
regarding bid rigging.
23. SEXUAL HARASSMENT
As a condition of this contract,the CONSULTANT shall have written sexual harassment
policies that include, at a minimum, the following information:
A. the illegality of sexual harassment;
B. the definition of sexual harassment under state law;
C. a description of sexual harassment, utilizing examples;
D. the vendor's internal complaint process including penalties;
E. the legal recourse, investigative and complaint process available through the
Illinois Department of Human Rights, and the Illinois Human Rights Commission;
F. directions on how to contact the department find commission;
G. protection against retaliation as provided by Section 6-101 of the Human Rights
Act.
A copy of the policies must be provided to the Department of Human Rights upon
request 775 ILCS 5/2-105.
24. NOTICES
All notices, reports and documents required under this Agreement shall be in writing
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and shall be mailed by First Class Mail, postage prepaid, addressed as follows:
A. As to CITY:
Gail Cohen
Purchasing Director
150 Dexter Court
Elgin IL 60120
B. As to CONSULTANT:
Mr. William Granato
President, Commercial Division
Arthur J. Gallagher
Risk Management Services, Inc.
Two Pierce Place
Itasca IL 60143-3141
IN WITNESS WHEREOF, the undersigned have placed their h nds and seals upon and executed
this Agreement in triplicate as though each copy hereof was an riginal and that there are no other
oral agreements that have not been reduced to writing in this tatement.
For the CITY:
ATTEST: THE CITY OF ELGIN
Alig ,
BY }14AILMiii-C.4~-, By IIWIY Iii\aip.m.**,..
City Clerk City Ma
(SEAL)
For the CONSULTANT:
Dated this / 7 day of 0 c--7 e--._ , A.D., 2002.
ATTEST:
By (-1- •I) ' ------z_ .
President
By Secretary
(SEAL)
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ATTACHMENT A
Arthur J. Gallagher Risk Management Service's Inc.
Scope of Services
The service proposal is based on providing the City of Elgin with a total of 200 hours of service
over a twelve-month period. The service hours will be split as follows:
• 24 hours in Safety Steering Committee and/or department safety meetings (12 meetings
at approximately 2 hours per meeting)
• 96 hours of safety audits for selected departments. (12 audits at 8 hours each)
• 80 hours of safety training and/or safety program devel¢pment.
This split is arbitrary and more or less time may be-allocated among the specific elements as
determined by need and the City of Elgin's requests.
The hourly fee for the above services is $98.75 per hour.
The estimated cost of this project is $19,750.00 dollars and is based upon the anticipated work
hours invested in this project.
Note: The billable hours include all consultants' time for office and fieldwork.
Arthur J. Gallagher will continue to assist the City of Elgin in 4eveloping safety policies and
procedures that will address employee safety and health related deficiencies noted in AJG's
previous audit as well as any newly identified safety and health related deficiencies that may
come to light during the service period.
The three elements that make up the backbone of the service pian:
1.) Safety Steering Committee and/or department safety meetings
2.) Safety audits of selected departments
3.) Safety training.
The following is the anticipated scope of work for each element
Safety Meetings
Arthur J. Gallagher will attend regularly scheduled Safety Steering Committee meetings and
selected City of Elgin department safety meetings. AJG's shall assist the Safety Steering
Committee with ongoing Safety and Health Program Development and provide whatever
guidance and resources they can to accomplish their stated goats. It is anticipated that the Safety
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Steering Committee will meet every other month. AJG will also attend selected City of Elgin
department safety meetings to assist them in specific safety related program development
issues. The departments will be selected by the City of Elgin's Risk Management Department.
AJG shall attend at least one department safety meeting every other month.
Written reports for all meetings will be provided to the City of Elgin's Risk Manager and all
other authorized personnel within seven working days.
Safety Audits
Arthur J. Gallagher will perform safety audits of selected departments. The audits will be
geared to identifying employee related safety and health hazards in the work environment,
examining compliance with established safety and health procedures and identifying areas
within the safety and health program in need of improvement. The audits will be both
announced and unannounced. No audits will be made without the prior knowledge and approval
of the City of Elgin's Risk Management Department. The purpose of the audits will be to assist
managers in developing the skills and tools necessary for effective identification of hazards
within their department and in developing a system of accountability to implement corrective
measures in a timely fashion.
At the conclusion of each audit, the department manager or designated individual will be
provided with a written hand out outlining the major findings of-the audit. This will be followed
by a formal written report of findings and recommendations within seven working days. The
final report will be sent to the City of Elgin's Risk Management Department, Department
Manager and other authorized individuals.
AJG shall perform monthly audits of selected departments. It is understood that not all
departments will need a full day to do an audit. More than one department may be audited
during a day.
Safety Program Development/Safety Training
Arthur J. Gallagher will assist the City of Elgin in the development of general health and safety
policies and procedures and in department specific and/or operational specific safety and health
policies and procedures, with emphasis on employee health and safety issues. It is anticipated
that the Safety Steering Committee will be instrumental in this;process. The underlying goal of
this committee should be to assist the various departments to develop, improve, communicate,
implement, support and monitor the safety and health policies and procedures adopted by the
City of Elgin. Arthur J. Gallagher will provide resources and guidance to assist the City of
Elgin in attaining its safety goals.
Safety training will be provided on an as needed basis. It is anticipated that we will provide
employee safety training and/or assist in the development of safety training programs on a
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variety of subjects to various departments during the course of the contract. This training may
run the gamut from supervisor accountability, accident investigation, fall-protection, and fleet
safety issues to "Train the Trainer" sessions on a myriad of subjects.
AJG has allotted eighty hours to perform these tasks. The hours may be allocated as the City
wishes and as the need arises.
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\yc
0rECC,
SAP. Agenda Item No.
City of Elgin
ralFoE
L ';
October 4, 2002 G 6 , TO 0
( IdI
TO: Mayor and Members of the City Council FINANCIALLY STABLE CITYGONERNMENT
EFFICIENT SERVICES,
AND QUALITY INFRASTRUCTURE
FROM: Olufemi Folarin, Interim City Manager
SUBJECT: Consideration of an RFP for Safety Consultant Services
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information to award a contract
for safety and loss control professional services to Arthur J.
Gallagher Risk Management Services, Inc.
rm. BACKGROUND
A 2002 Decision Package for the Risk Management Division of the
Purchasing Department was approved for safety consultant
services . The consultant' s duties shall include :
• Development, coordination and implementation of safety and
health compliance policies and procedures including
industrial hygiene and job safety analysis for use by all
City departments .
• Attendance at regular safety meetings, city wide and within
departments .
• Consultation as appropriate with management and employees
on loss control matters to prevent injuries, occupational
diseases, vehicular collision and damage to City equipment
and material .
• Recommendation and development of new safety programs for
various departments based on specific departmental needs .
• Evaluation of effectiveness of safety programs and
recommended modifications to programs to increase
effectiveness .
• Evaluation of job sites for compliance with City and State
safety regulations .
.
Safety Consultant
October 4, 2002
Page 2
The Purchasing Department was allocated $20, 000 for these
services . This figure was included as a "not to exceed" in the
Request for Proposals for safety consultant services .
The Request for Proposals was advertised in the August 22, 2002,
"Courier News" and requested by four firms . Three proposals
were received; from Arthur J. Gallagher, Devine & Tweedale and
Adams Safety Management Services . The proposals were reviewed
by the Risk Management Division and were evaluated as follows :
Arthur J. Gallagher - The City entered into a contract with
Arthur J. Gallagher (AJG) in 2001 which is coming to an end.
During the contract term, AJG completed safety audits of all
departments and provided draft safety procedures that will form
the basis of a Loss Control Manual for use across the City. AJG
is currently attending our Safety Committee meetings and
subcommittee meetings . This familiarity with the City' s
operations gives the consultant an advantage over other
Fro. consultants which was reflected in AJG' s proposal . Their
proposal recognizes the progress the City has made in its safety
program in the last year and addresses future goals; i .e. ,
ongoing safety committee meetings, safety policy development and
policy implementation.
Devine & Tweedale - This firm has a lot of municipal experience
in risk management . Their proposal was not very detailed and
seemed to propose repeating the research that was already
performed by AJG. The fee proposal stated a charge of $2 , 000
per "safety policy" which, combined with the hourly rates of the
consultants, could quickly exceed our $20, 000 cap.
Adams Safety Management Services - This consultant proposed the
use of four staff members which Risk Management feared would
provide a fragmented approach. The majority of the hours seemed
to be assigned to the less experienced staff . Adams proposes
tasks, such as meeting with department heads, which have already
been performed by AJG.
Based on the above, it is recommended that the City continues
its relationship with Arthur J. Gallagher.
l Safety Consultant
October 4, 2002
Page 3
GROUPS/INTERESTED PERSONS CONTACTED
None.
9/4.. INANCIAL
IMPACT
There are sufficient funds budgeted ($:20, 000) and available
($42 , 676) in account number 630-0000-796 . 30-99, Risk Management
Miscellaneous Professional Services to cover this "not to
exceed" $20, 000 contract with Arthur J. Gallagher Risk
Management Services, Inc .
Vil"h GAL IMPACT
None .
ALTERNATIVES
w 1 . Award the contract as recommended.
f" 2 . Award the contract to one of the other two firms .
RECOMMENDATION
It is recommended that the City Council approve award a contract
for safety and loss control professional services to Arthur J.
Gallagher Risk Management Services, Inc . in an amount not to
exceed $20, 000 .
Respectfully submitted,
1Z)L .
Olufemi F. Kirin •
Inter 'm Ma - ger
GAC